Only a Small Percentage of Indonesian Workers Have Pension Coverage

Adi Ahdiat 09/09/2024 16:36 WIB

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According to IFG research, in 2020, only approximately 13% to 16% of Indonesia's formal workforce were registered as participants in the public pension fund program.

Comparison of the Number of Workers, Formal Employees, and Participants in the Public Pension Fund Program in Indonesia (2020)

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Comparison of the Number of Workers, Formal Employees, and Participants in the Public Pension Fund Program in Indonesia (2020)

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Only a small percentage of Indonesian workers have pension coverage.

This is recorded in a research report by the Indonesia Financial Group (IFG) titled *Indonesia Pension Funds: Conditions & Challenges* (2021).

According to IFG research, in 2020 Indonesia's workforce population reached 128.5 million people.

Of this group, only 50.7 million were formal workers.

Furthermore, formal workers registered as participants in the pension fund program at BPJS Ketenagakerjaan, Taspen, and Asabri ranged from only 17.5 million to 20.6 million people.

Based on this data, the proportion of Indonesian workers covered by public pension fund institutions was only around 13% to 16% of the total workforce in 2020.

This proportion is significantly lower than that of neighboring countries.

According to the IFG report, the proportion of workers with pension coverage in Malaysia reached 31.3% of their total workforce in 2020. Coverage in Thailand reached 28.3%, and in the Philippines, 22.2%.

Compared to Organisation for Economic Co-operation and Development (OECD) member countries, Indonesia lags far behind.

IFG notes that, on average, OECD countries had pension coverage of 50.33% in 2020.

Several OECD countries have a higher-than-average proportion of pension plan participants: Denmark at 62.2%, Japan at 61.7%, and the UK at 55.7% of their total workforce.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."